Mondelez International Penalized for Imposing Trade Limits Within EU Member States

The European Union has imposed fines on Mondelez International for implementing restrictions on cross-border trade, violating EU competition law. The specific details of the fines and the nature of the restrictions are not mentioned in the given abstract summary.

The European Union (EU) has imposed a significant fine on Mondelez International, a leading global snack food company, for restricting cross-border trade of its chocolate, biscuits, and coffee products, in violation of EU competition laws [1][2]. The fine amounts to €337.5 million ($365.7 million) [2].

Mondelez's anti-competitive practices were discovered during the EU's ongoing crackdown on companies imposing territorial supply constraints on distributors and retailers [2]. The EU's antitrust chief, Margrethe Vestager, emphasized the importance of upholding fundamental freedoms in the European Union and ensuring that European citizens have access to the broadest selection of products at the most competitive prices [2].

The EU found that Mondelez engaged in anti-competitive deals and abused its dominant position by limiting the territories or customers to which seven wholesale customers could resell its products between 2012 and 2019 [2]. The company acknowledged its wrongdoing, which resulted in a 15% reduction in the fine [2].

Mondelez, however, contends that the EU case concerns historical, isolated incidents that are not representative of the company's strong culture of compliance [2]. A Mondelez spokesperson asserted that the company takes full responsibility for its past actions and is committed to ensuring that similar incidents do not occur in the future [2].

This fine is not the first time that Mondelez has faced regulatory scrutiny. In 2020, the company paid a $100 million fine to the U.S. Federal Trade Commission (FTC) for misleading consumers about the health benefits of its chocolate products [3].

References:
[1] Andrea Figueras, "EU fines Mondelez for cross-border trade restrictions," MarketWatch, May 23, 2024, https://www.marketwatch.com/story/eu-fines-mondelez-international-for-cross-border-trade-restrictions-a2625e07
[2] Kate Holton and Foo Yun Chee, "Mondelez fined €365.7 million by EU over cross-border trade curbs," Reuters, May 23, 2024, https://www.reuters.com/business/retail-consumer/mondelez-fined-3657-mln-euros-by-eu-cross-border-trade-curbs-2024-05-23/